KUALA LUMPUR (Oct 29): ES Ceramics Technology Bhd, whose annual net profit had shrunk significantly in its financial year ended May 31, 2018 (FY18), is expecting a turnaround in FY19 as the group has started to see a stronger pickup in its orderbook.
"The inquiry is a lot stronger than before [compared to last year], some of which has also turned into orderbook, which has boosted its outstanding orderbook to three months," its chief executive officer Wong Fook Lin told reporters on the outlook for ES Ceramics after the company's 15th annual general meeting here today.
"Going forward, we will have to stay focused to ensure our quality can meet clients' requirement, and [being] consistent is the key," Wong said, adding that the group will also continue to invest in automation in its manufacturing plant to achieve better operational efficiencies and improved profitability.
In FY18, ES Ceramics saw its net profit tumble 96.31% to RM234,000 from RM6.33 million a year ago, while revenue also fell 24.3% to RM25.18 million compared to RM33.27 million in FY17.
ES Ceramics said it has put on hold the plan to transfer to the Main Market of Bursa Malaysia from the ACE Market as the move is too costly.
Wong said the group will not transfer to Main Market of Bursa Malaysia in near term, adding that for the next two years the group will still maintain its listing at the ACE Market despite having met the requirement to move to the Main Market.
In 2015, the group had set the target to transfer to main market in three years' time. The group had then recorded a significant growth in net profit, which doubled from RM2.62 million in FY14 to RM5.59 million in FY15.
At noon market break, shares of ES Ceramics traded 0.5 sen or 2.63% lower at 18.5 sen, valuing the group RM39.04 million.